Bitcoin Social Dominance Hits Highest Point Since ’22 – Will a Rebound Follow?
• Bitcoin’s dominance has hit it’s highest point since September 2022, despite a 6.21% price drop in the market.
• Altcoin prices have dropped significantly more than Bitcoin; Litecoin [LTC] 12.54% and Cardano [ADA] 10.37%.
• Futures perpetual funding rate indicates that most long positions were liquidated across exchanges.
Bitcoin Dominance Hits Highest Point Despite Price Drop
Bitcoin’s [BTC] price drop since the new month began might have been demoralising for investors. However, the king coin continues to exert supreme dominance in the market with a 6.21% decline at the time of writing, while fellow competitors like Litecoin [LTC] fell by 12.54% and Cardano [ADA] dropped by 10.37%. Santiment pointed out this trend on social media and noted that BTC’s higher social dominance historically has initiated market rebounding.
Positive Perpetual Funding Rate
Despite the initial hike, short-positioned traders did not renege on maintaining their position and gained significantly over longs due to the Futures perpetual funding rate according to Glassnode which indicates a positive rate meaning that most longs were liquidated across exchanges with a 0.05% rate at press time.
The on-chain analytics platform Santiment affirmed that BTC has been comparatively outperforming a majority of the market’s altcoins but also pointed to its increasing social dominance which gauges the share of discussion referring to an asset and surged to its highest level since September 2022 according to them implying that BTC is getting hyped but with no guarantee of capitalizing on short-term bottoms as its dominance fell from 19.19% to 13.86 % at press time .
Is A Rebound On The Way?
The case for capitalizing on short-term bottoms may again be non-existent as mentioned above however ,the initial resistance to its historical March falls may now be in motion leading one to question whether or not there may be potential for a historical recoil on the way .